Federal Programs

• The federal guidelines for financial aid eligibility do not mention owing back taxes as a disqualifying factor. The only debts that affect eligibility are currently being in default on federal student loans or owing a federal grant refund. Therefore, you are eligible for federal financial aid as a Georgia student, even if you owe the IRS back taxes.
  
  

Georgia State Programs

• Georgia offers a variety of financial aid awards to college students who are legal residents of the state. The main program is the Helping Outstanding Pupils Educationally (HOPE) grants and scholarships, which are funded by the Georgia lottery for education. Owing back taxes to the IRS does not affect your eligibility for the HOPE grants and scholarships. However, you will still need to meet the other criteria, which includes all of the federal government criteria, in addition to residency in Georgia and not being in default on any Georgia state student loans or owing a refund on Georgia state grants or scholarships.
  
  

Applying for Aid

• Apply for federal and Georgia financial aid by filling out the Free Application for Federal Student Aid. The federal government sends the data to the Georgia Student Finance Commission, which then uses this data to help determine whether you receive financial aid from the state. Both the federal and state governments consider your family's income and assets and the annual cost of attending your school when determining what aid you receive. The Georgia Student Finance Commission also uses your grade point average to determine eligibility for some programs.
  
  

Private Aid

• Georgia does not set any restrictions on how private companies determine financial aid eligibility. Therefore, if you are trying to get private student loans, grants or scholarships from companies in Georgia, they might consider your debt to the IRS. In particular, private lenders for student loans view your credit report, which will show your tax lien if the IRS has placed one against you.